Vodafone can afford to increase dividend

Expansion has given the telecoms giant plenty of options but dont expect to see its share price rise, writes Ciaran Hancock

VODAFONE may be considered a British-based mobile phone operator, but with about 465,000 Irish shareholders it is of more than passing interest to the investment community here.

Founded 20 years ago, Vodafone entered the Irish market in 2001 with its €3 billion purchase of Eircell from eircom. It is the country’s largest mobile operator, with 1.74m customers out of a total market of about 3.1m.

The Irish operation is also hugely profitable. Vodafone’s Irish customers spent about €150 per person more than their British counterparts on mobile calls and text messages last year.

Vodafone puts this discrepancy down to the fact that Irish customers spend more time on mobile calls than people do in Britain. Cynics would say that it might have something to do with the fact that Irish customers are charged more.

Vodafone’s sphere of influence covers most European Union countries, in addition to Japan, China, Australia, America